UPSC Previous Year Question | Prelims GS | 2022

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct? 1. They can sell their own goods in addition to offering their platforms as market-places. 2. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

Neither 1 nor 2

Explanation

As per FDI rules, foreign-owned e-commerce marketplace entities cannot sell their own inventory (Statement 1 false). Per the official key, Statement 2 is also treated as incorrect, so the answer is 'Neither 1 nor 2'.

Topics: e commerce, economy, foreign direct investment, marketplace model